University of Louisville Kentucky s Premier Metropolitan Research University Business Plan 2020 Budget Request 2008-2010
Today - CPE requirement for BOT Approved Business Plan U of L approach Update Strategic Plan Drives Business Plan Drives Budget Request 2
5 Simple Points Point 1 U of L great history/tradition But we are a very different Institution today; - we were told to be... 3
Our Drivers Boyle Report 1996 Community Agenda to Build Economy House Bill 1-1997 A Public Agenda for Higher Education to Build Economy Challenge for Excellence U of L 10 Year Plan 1998-2008 4
5 Simple Points Point 2 We have a ten (10) year proven track record of success... 5
10 year Proven Track Record of Success From the Challenge! Achieve classification as a Carnegie Research I/Research Extensive university! Improved quality of incoming students ACT Scores from 21.2 to 24.3! Increased graduation rates from 33.2% to 43.6%! Increased Retention Rates from 72.1% to 78.2%! Wall Street Journal survey named UofL one of the 30 top feeder schools to nation s top graduate schools! Record number of student awards (Fulbright, Goldwater, Rotary, etc.)! Honors Program growth from 278 in 1999 to 920 in 2006 6
10 year Proven Track Record of Success From the Challenge! 30 nationally recognized programs in 2007 from objective, external reviewers! More than 15 new cancer drugs under development one of top 5 in the country in terms of new drug development,! Nationally sponsored cancer research funding grew from $300,000 in 1999 to $44 million in 2007,! Cancer capital campaign topped its $60 million, fiveyear goal in only 18 months; campaign continues 7
10 year Proven Track Record of Success From the Challenge! 125 endowed chairs and professorships in Fall 2007! 144 doctoral graduates in 2006! Federal research expenditures $80.4 million in 2007 from $15 million in 1999! Total research expenditures $101.1 million in 2007 from $28.9 million in 1999! Fastest growth among research universities, according to NIH 8
10 year Proven Track Record of Success From the Challenge! Endowment was $796 million on June 30, 2007! Endowment ranks 91st among 745 NACUBO universities (2006 study)! Business start-ups grew from 0 to 24 between 1999 and 2007! 40 patents issued between 1998 and 2007 for a cumulative total of 55! 47 licenses and options issued between 1999 and 2007 for a cumulative total of 62 9
10 year Proven Track Record of Success From the Challenge!Commitment to community:! Metropolitan College UofL / KCTCS / UPS! Signature Partnership Program Louisville West End! Urban Solutions Center Kentucky League of Cities! Partnership for a Green City! JCPS i.e. $25 million grant from General Electric Co.! VA Hospital! Museum Plaza 10
5 Simple Points Point 3 We commit to finish the job... 11
We Commit to Finish the Job! Double the Numbers by 2020!Undergraduate 736 more graduates! Increase enrollment by 1,950 by 2014! Improve graduation rates from 44 to 60% by 2020! Increase transfer students by 481 by 2020!Graduate Students! PhDs grow by 206! Professional degrees by 50 12
We Commit to Finish the Job!Grow research to $400 million by 2020!Continue to lead state in diversity!lead transformation of community/regional economy! A $20.5 million DOE workforce grant! Haymarket/HSC Development ($2.56 billion)! Shelby Campus Research Park! Cultural/Artistic Driver!Continue to lead state with stewardship 13
5 Simple Points Point 4 We know what it will take... FY07 $31.4m in GF appropriation FY10 $53.8m in GF appropriation Assuming 5% tuition increase 14
5 Simple Points Point 4 Our Business Plan Projected Revenue 15
Sources of Funding! State Appropriation! $31.4 million / $53.8 million! Tuition & Fees! 5.0% per year increase! Biennial New Revenue - $20.4 million! Philanthropy! Biennial New Revenue - $32.1 million! Grants & Contracts! Biennial New Revenue - $18.1 million! Clinical Operations! Other Funds 16
5 Simple Points Point 4 Our Business Plan Projected Expenditures 17
Business Plan Assumptions! Base Budget Projected Growth Rates! Salaries & Wages - 3.0% (recommended by CPE staff)! Fringe Benefit Rate 28.7% of Salaries! Health Insurance - 10.0%! Supplies and Operating Expenses - 2.5% (recommended by CPE staff)! Library Materials - 5.0%! Financial Aid 5%! Utilities - 6.5%! Capital Renewal & Deferred Maintenance 1.5% of VFA Replacement Value for 2006, increased 4% each year after FY08 18
Undergraduate Education! Faculty Expenses - $7.9 million in 2008-10:! 230 additional faculty by 2020! Cost of additional Faculty plus salary catch-up! Academic Support Expenses - $1.9 million in 2008-10:! $9K per new faculty for Library Support! $15K per new faculty for start-up expenses! $1 million for staff enhancements! Administrative Support Expenses - $6.9 million in 2008-10:! Administrative infrastructure to support new faculty! Instructional Technology - $3 million in 2008-10:! Audio/Video Presentation Equipment! Interactive Conferencing! Virtual Learning Environments and Community Software 19
Undergraduate Education Base Year Biennial Budget 2008 2008-09 2009-10 Faculty Expenses 0 3,733,000 7,901,000 Academic Support Expenses 0 1,600,000 1,889,000 Administrative Support Expenses 0 3,250,000 6,914,000 Instructional Technology - IT 0 1,500,000 3,000,000 Subtotal New Instr. Faculty & Related Staff 0 10,083,000 19,704,000 20
Undergraduate Education! Undergraduate Education Expenses - $1.7 million in 2008-10! Infrastructure to support approximately 5000 additional students by 2020! Enhance Student Service - $375K in 2008-10! More Robust Counseling Services! Better Career Services! Enhanced Health Services! Improve Out of Class Experience - $333K in 2008-10! Leadership Development! Recreational sports! Campus Housing! Social Programming! Developmental Education - $1.12 million in 2008-10! Support recommendations by the Statewide Task Force on Developmental Education! STEM - $2.7 million in 2008-10! Other Undergraduate Strategic Initiatives - $3.4 million in 2008-10 21
Undergraduate Education Base Year Biennial Budget 2008 2008-09 2009-10 Undergraduate Education Expenses 0 798,000 1,693,000 Enhance Student Services 0 188,000 375,000 Improve "Out of Class" Experience 0 167,000 333,000 Developmental Education - Preparation 0 164,000 785,000 Developmental Education - Infrastructure 0 0 340,000 Science, Technology, Engineering & Math (STEM) 0 2,609,000 2,687,000 Ideas to Action - QEP 0 560,000 670,000 Other Undergraduate Strategic Initiatives 0 2,810,000 3,435,000 Subtotal Undergraduate Education 0 7,296,000 10,318,000 22
Research and Scholarship! Recruit 60 new investigators and 30 new scholars in the first five years of the plan! Funding for research include new grants and endowments, philanthropy, health systems revenues, and increased F&A revenues! Extramural research improves the economic development of the Commonwealth 23
Research and Scholarship Base Year Biennial Budget Intermediate Target 2008 2008-09 2009-10 2014 2020 Research Strategic Plan 0 17,076,000 19,678,000 28,884,000 34,419,000 Research Infrastructure - IT 0 3,000,000 6,000,000 16,500,000 25,500,000 Other Research Strategic Initiatives Clinical & Translational Science Awards (CTSA) 0 4,000,000 4,200,000 5,105,000 6,841,000 Bioinformatics Program 0 3,560,000 3,050,000 3,050,000 3,050,000 Center for Predictive Medicine 0 3,500,000 3,675,000 4,467,000 5,986,000 Total Research & Scholarship 0 31,136,000 36,603,000 58,006,000 75,796,000 24
Diversity, Social Justice & Opportunity Base Year Biennial Budget Intermediate Target 2008 2008-09 2009-10 2014 2020 Diversity Programs 0 505,000 851,000 2,346,000 4,948,000 Cardinal Covenant Program 0 555,000 1,055,000 2,351,000 3,150,000 Unfunded Financial Aid Mandates 0 1,371,000 1,439,000 1,750,000 2,345,000 Total Diversity, Social Justice & Opportunity 0 2,431,000 3,345,000 6,447,000 10,443,000 25
Community Engagement Base Year Biennial Budget Intermediate Target 2008 2008-09 2009-10 2014 2020 Signature Partnership Program 0 770,000 1,770,000 3,573,000 3,573,000 Urban Solution Center 0 250,000 250,000 250,000 250,000 Total Community Engagement 0 1,020,000 2,020,000 3,823,000 3,823,000 26
Stewardship & Accountability Base Year Biennial Budget Intermediate Target 2008 2008-09 2009-10 2014 2020 Information Technology Basic Infrastructure 0 1,000,000 2,000,000 5,500,000 10,000,000 Administrative Systems 0 1,000,000 2,000,000 4,500,000 7,500,000 Information Technology Catch-up 0 480,000 1,000,000 2,200,000 4,000,000 Subtotal Information Technology 0 2,480,000 5,000,000 12,200,000 21,500,000 Staff Salary & Wage Catch-up 0 2,000,000 2,060,000 2,319,000 2,768,000 University Compliance 0 558,000 695,000 1,019,000 1,379,000 Maintenance & Operations on New Space 0 6,765,000 8,988,000 27,197,000 75,081,000 Total Stewardship, Accountability & Gen. Adm. Spt. 0 11,803,000 16,743,000 42,735,000 100,728,000 27
Long-Term Financial Plan Strategic Initiatives Cumulative Required Funding (in millions) Base Year Biennial Budget Intermediate Target 2008 2008-09 2009-10 2014 2020 Educational Experience 0.0 20.2 37.4 107.1 193.0 Research & Scholarship 0.0 31.1 36.6 58.0 75.8 Diversity, Social Justice & Opportunity 0.0 2.4 3.3 6.4 10.4 Community Engagement 0.0 1.0 2.0 3.8 3.8 Stewardship, Accountability & General Administrative Support 0.0 11.8 16.7 42.7 100.7 Total Strategic Initiatives 0.0 66.6 96.1 218.1 383.8 Productivity & Efficiency Savings @ 1.5% 0.0 (3.1) (3.5) (4.2) (4.2) Total Projected Expenditures 867.5 966.1 1,031.8 1,291.4 1,714.6 General Fund Request 0.0 31.5 53.8 191.5 386.5 28
5 Simple Points Point 5 Despite CPE mandate to develop business plan so policy makers know what it costs... CPE draft recommendation creates a funding gap of: FY09 $15.5 million FY10 $23.8 million This gap includes a projected 9% tuition increase 29
CPE General Fund Request EKU KSU MoSU MuSU NKU WKU KCTCS Uof L UK Average System 08-09 8.1% 5.8% 7.2% 6.2% 9.3% 7.5% 11.2% 6.7% 5.3% 7.5% 09-10 6.2% 3.8% 4.9% 7.3% 9.2% 6.0% 8.4% 7.0% 4.8% 6.5% * These percentage increases include M&O on new facilities but not new tuition revenue. 30
And we have been asked by CPE to support recommendation... 31